Score Higher on Verified Better-Business-Cases-Practitioner | Better Business Cases Practitioner Exam Questions with Answers

A. True, AND the reason explains the assertion.Operating costs are indeed revenue costs rather than capital costs and should not be included in the Capital Profile.

B. True, BUT the reason does not explain the assertion.The income from grants should not be shown on the Capital Profile if they are intended to support operating costs, which should be part of an Income and Expenditure Account. However, capital grants used for capital expenditures could be included in the Capital Profile.

E. False, False.There is no funding gap of $810,000. The Total Funding matches the Total Spend over the five years, as shown in the table.

A. True, AND the reason explains the assertion.Receipts from the sale of the school would typically be considered as contributing to the funding of capital costs for construction, aligning with the accountancy treatment of recognizing proceeds from asset disposal.

The assertion is that the conversion of the Old Fire Station Headquarters site should be considered as a non-standard building project for deriving the optimism bias adjustment factor because non-standard building projects involve significant planning and construction risks. This isTrue, and the reason given is alsoTrueand explains the assertion because the presence of significant risks is precisely why it would be categorized as non-standard and why an optimism bias adjustment would be needed.

Correct Option: A

The assertion states that the optimism bias should be set midway between the upper and lower works duration limit to reflect the identified timescale risks becauseoptimism bias should be reduced as each risk is mitigated. This isTrue; however, the reason isTruebut does not correctly explain the assertion. Optimism bias is related to underestimation of risks, not their mitigation.

Correct Option: B

The assertion here is that opposition of staff and students to the move should be categorized as a decant risk because a decant risk arises in accommodation projects related to moving staff and clients. This isTrue, and the reason isTrueand directly explains why such opposition should be considered a decant risk.

Correct Option: A

The assertion that risks to the timetable should be used as the basis for scenario analysis isTrue. The reason given is that sensitivity analysis of Economic Appraisal findings should identify reasons for variances in project assumptions and estimates, which is alsoTrueand provides a correct explanation for using risks in scenario analysis.

Correct Option: A

The final assertion is that the preferred option must consider developing on the Pittville University site to manage all 16-18 education because it has the highest net present social value. This assertion isFalsebecause the preferred option should be the one with the best value for money overall, considering both quantitative and qualitative benefits. The reason is alsoFalsebecause it incorrectly suggests that the option with the highest net present social value automatically demonstrates the best value for money, without consideration of costs or other factors.

Correct Option: E

Therefore, the correct options for each line are A, B, A, A, and E, respectively